JSW Steel and South Korea’s POSCO Group have entered into a joint venture agreement to establish a greenfield integrated steel plant in Odisha through Saffron Resources, a wholly-owned subsidiary of JSW Steel, which will now operate as a 50:50 joint venture entity.
The board of JSW Steel sanctioned the share subscription and joint venture agreement on April 17. The planned project is expected to achieve a production capacity of six million tonnes per annum (MTPA) and will be constructed on 887 acres of land that has already been secured in Odisha, consisting of 595 acres of freehold and 292 acres of leasehold land.
According to the agreement, both companies will have equal representation on the joint venture board. In terms of financial arrangements, POSCO is set to invest approximately Rs 508.8 crore to acquire shares, with the completion date aimed for December 31, 2026, subject to potential extensions.
This partnership is in line with JSW Steel’s long-term objective of increasing its capacity to 50 MTPA by FY31, while POSCO enhances its global expansion strategy. The announcement also aligns with initiatives to strengthen India–South Korea economic relations, emphasizing collaboration in manufacturing, green energy, semiconductors, and infrastructure.
